Consultation Paper: Cost Allocation Review

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Consultation open: Energy Policy WA invites stakeholders' feedback on the preliminary conclusions and proposals regarding the allocation of Market Fees and Essential System Services costs, as presented in the Cost Allocation Review Consultation Paper.
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The Coordinator of Energy is undertaking the Cost Allocation Review under clause 2.2D.1 of the Wholesale Electricity Market (WEM) Rules.

The Cost Allocation Review is a review of the allocation of Market Fees and Essential System Services (ESS) costs to Market Participants.

The Coordinator has published a Cost Allocation Review Consultation Paper that:

  • sets out the preliminary assessment of the cost allocation methods against the guiding principles for the review, including whether the methods are aligned with the causer-pays principle;
  • proposes options for cost allocation methods that are more consistent with the guiding principles, where it was determined that the methods do not align well with the guiding principles;
  • provides a quantitative assessment of the impact of the proposed options on Market Participants, in comparison to the status quo; and
  • sets out some preliminary proposals for changes to the cost allocation methods in the WEM Rules, where relevant.

Stakeholders are invited to provide feedback on the proposals in the Consultation Paper before 5:00pm (AWST), 9 February 2023 by submitting comments to energymarkets@dmirs.wa.gov.au.

A copy of the consultation paper can be found on the Cost Allocation Review page.

Page reviewed 16 December 2022